SARATOGA, Calif. — CareTrust REIT (NASDAQ: CTRE) has acquired Our Lady of Fatima Villa, featuring 85 beds of skilled nursing and 37 units of assisted living in the San Jose suburb of Saratoga.

Catholic nonprofit Our Lady of Fatima Inc. was the seller. CareTrust paid approximately $19 million, including transaction costs, with cash on hand.

CareTrust plans to rebrand the community as The Villas at Saratoga and lease it to Kalesta Healthcare LLC, a San Francisco-based operator. This is the first partnership between CareTrust and Kalesta.

Cash rent for the first two years is $3.4 million, and thereafter escalates based on CPI. Additionally, CareTrust has committed to fund approximately $1.4 million in capital expenditures over the next 24 months based on the in-place lease yield.

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